Salaries Tax

Hong Kong Taxation

Salaries Tax

Scope of Charge

According to the regional source to charge the salaries tax, all income raised in or derived from Hong Kong is charged as salaries tax.

Assessment Period

The period from 1 April of one year to 31 March of the next year

Deductions

	Donations from approved charitable organizations
	Contributions paid to recognized retirement schemes
	Self education expenses
	Interest on personal home loans and all outgoing expenses incurred
	Expenses which is wholly or compulsory in the process of the assessable income

Allowances

Allowances in Calculating Salaries Tax (HK$)	2008/09 onwards	2007/08
Basic Allowance	108,000	100,000
Married Person's Allowance	216,000	200,000
Child Allowance (each) - each child - each child born in the year, each child has additional allowance	50,000 50,000	50,000 50,000
Dependent Parent / Grandparent Allowance (each) Parent / grandparent aged 60 or above or is eligible to claim an allowance Parent / grandparent aged 55 or above but below 60	30,000 15,000	30,000 15,000
Additional Dependent Parent / Grandparent Allowance (each) Parent / grandparent aged 60 or above or is eligible to claim an allowance Parent / grandparent aged 55 or above but below 60	30,000 15,000	30,000 15,000
Dependent Brother/ Sister Allowance (each)	30,000	30,000
Single Parent Allowance (each)	108,000	100,000
Disabled Dependent Allowance (each)	60,000	60,000

Calcuation of Net Chargeable Income

Net Chargeable Income = Income - Deductions - Allowances

	Tax payable is calculated at progressive rates on your net chargeable income; or
	At standard rate on your net income (before deduction of the allowances),whichever is lower.

Tax Rates in 2008/09 onwards

Net Chargeable Income	Tax Rate
First $40,000	2%
Next $40,000	7%
Next $40,000	12%
Remain	17%
Standard Rate of Tax	15%

Remarks:

In the 2009-10 Budget delivered on 25 February 2009, the Financial Secretary proposed a one-off reduction of 50 % of the 2008-09 final tax in respect of salaries tax and tax under personal assessment, subject to a ceiling of $6,000. On 26 May 2009, the Financial Secretary proposed to increase the one-off reduction for the 2008-09 salaries tax and tax under personal assessment to 100%, subject to a revised ceiling of $8,000.

Provisional Salaries Tax

(Source: Inland Revenue Department)

The above information is provided for your reference, please visit the website of Hong Kong Inland Revenue Department for details.

Relevant Services

Provide accounting services (Please refer to Accounting)

For any enquiries, please contact Mr. Ivan Wong at 2317 4045, via fax 2317 4049 or via email.